In the modern industrial world, many electronic and electrical control devices are designed with the use of modern power electronics, are characterized by an extreme sensitivity on power quality variations. Voltage sag, swell or interruption in one phase of a three-phase system due to LG fault, capacitor switching or any other reason is to he mitigated immediately for proper functioning of all the equipments. A three-phase transformer connected in zigzag connected winding across a star connected three-phase load may compensate the voltage disturbances at any one phase of the load. The effect of proposed scheme investigated for two types of balanced connected in star load (RL load and motor load) is supplied by a three-phase four -wire, Dyn, 20K/380V transformer. Simulation performed by MATIAB/SIMIJIINK verified the validity of the proposed scheme.